Citigroup has arranged EUR 45 million syndication for Luxten
31 Oct 2006
Citigroup was sole mandated lead arranger for the syndication, which was oversubscribed by more than 25%. The other lenders participating were HVB-Tiriac Bank, Raiffeisen Bank Romania, BRD Societe Generale, Alpha Bank, Volksbank Romania and Piraeus Bank.
“This was a very exciting transaction for Luxten as it was the first time we have sought a syndicated loan. The significant oversubscription of the original facility has shown us the potential for even wider business opportunities than we had originally intended”, says Claudiu Nicolae Radulescu, CEO of Luxten.
“We would like to thank the syndicate members for their confidence in our company and especially Citigroup, which proved once again to be not only a financing bank, but also a long lasting committed partner. We regard this experience as the beginning of a new strategy for Luxten”, adds Claudiu Nicolae Radulescu.
“This is truly a landmark transaction that confirms once again the confidence of the international and local investors in the Romanian market. The transaction was launched at EUR 35 million and was oversubscribed, finally closing at EUR 45 million,” says Shahmir Khaliq, Citigroup Country Officer. “Citigroup is proud to have supported the first international market tapping of Luxten. We believe in Luxten’s ambitious growth strategy and potential, and are confident that this syndication is the first one in a successful series”, added Shahmir Khaliq.
The proceeds from the facility will be primarily used for investments in AEM Timisoara Branch, (meter manufacturing). The term loan will also support the infrastructure improvement in the public lighting services area and electrical power production through micro hydropower plants. Luxten is also interested in the participation in the Bucharest optical fiber metropolitan network project – NETCITY.
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